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Let i, d, i (3) and d (2) be equivalent rates. As usual, i denotes the annual effective interest rate, d corresponds to the annual
Let i, d, i (3) and d (2) be equivalent rates. As usual, i denotes the annual effective interest rate, d corresponds to the annual compound discount rate, i (3) represents the annual rate of interest compounded three times a year, and d (2) is the annual rate of discount compounded semiannually. Suppose that d (2) d = 0.001444. Find i i (3) .
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